In a Decentralized Organization

question 18

Multiple Choice

In a decentralized organization,

• A)all functions are delegated to subunit managers who are closest to the information.
• B)subunits under the control of a single manager are normally grouped by organizational structure.
• C)it would be difficult to group geographically related subunits pursuing different missions under the same manager.
• D)functions such as financing and product/service pricing are typically retained by top management.

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Definitions:

Payable Today

The total amount that is due and needs to be paid immediately or on the current date.

Short-Term Interest Rate

The interest rate charged on loans or realized on investments over a short period, typically less than a year.

Surplus Funds

Additional money or assets available after all expenses have been accounted for, often used for investment or saving.

Scheduled To Be Paid

Refers to payments that are planned and outlined to be made on specific dates as per a payment agreement or schedule.